Acid Rain Provisions

ENVIRONMENTAL PROTECTION AGENCY

[FRL-6340-2]

Acid Rain Provisions

AGENCY: Environmental Protection Agency (EPA).

ACTION: Notice.

-----------------------------------------------------------------------

SUMMARY: EPA today announces the allocation of allowances to small

diesel refineries for desulfurization of fuel during 1998. The

eligibility for and calculation of allowances to small diesel

refineries is in accordance with section 410(h) of the Clean Air Act,

implemented at 40 CFR part 73, subpart G.

FOR FURTHER INFORMATION CONTACT: Kenon Smith, EPA Acid Rain Division

(6204J), 401 M St., SW, Washington DC; telephone (202) 564-9164.

SUPPLEMENTARY INFORMATION:

EPA's Acid Rain Program was established by Title IV of the Clean

Air Act Amendments of 1990 (CAAA) to reduce acid rain in the

continental United States. The Acid Rain Program will achieve a 50

percent reduction in sulfur dioxide (SO2) emissions from

utility units. The SO2 reduction program is a flexible

market-based approach to environmental management. As part of this

approach, EPA allocates ``allowances'' to affected utility units. Each

allowance is a limited authorization to emit up to one ton of

SO2. At the end of each calendar year, each unit must hold

allowances in an amount equal to or greater than its SO2

emissions for the year. Allowances may be bought, sold, or transferred

between utilities and other interested parties. Those units whose

annual emissions are likely to exceed their allocations may install

control technologies or switch to cleaner fuels to reduce

SO2 emissions or obtain additional allowances.

Section 410(h) of the Clean Air Act provides allowances for small

diesel refineries that desulfurize diesel fuel from October 1, 1993

through December 31, 1999. Small refineries are not otherwise affected

by the Acid Rain Program and do not need the allowances to comply with

any provision of the Clean Air Act. Thus, the allowances serve as a

financial benefit to small diesel refineries desulfurizing diesel fuel.

The following table lists the allowances allocated to eligible

small diesel refineries for desulfurization in 1998. A total of 25,617

allowances are allocated to 16 refiners. These allowances have a

compliance year of 1999.

------------------------------------------------------------------------

Refinery name or

Refiner location Allocation

------------------------------------------------------------------------

Big West Oil...................... Flying J, Utah...... 1,500

Cenex............................. Laurel, Montana..... 1,500

Frontier.......................... Cheyenne, Wyoming... 1,500

Giant............................. Giant............... 1,350

Ciniza, New Mexico.. 1,475

Golden Bear....................... Oildale, California. 142

[[Page 25336]]

Holly............................. Lea, New Mexico..... 1,500

Navajo, New Mexico.. 500

Montana............. 289

Hunt.............................. Tuscaloosa, Alabama. 1,386

Inland............................ Woods Cross, Utah... 564

Kern.............................. Bakersfield, 1,500

California.

La Gloria......................... Tyler, Texas........ 1,500

Lion.............................. El Dorado, Arkansas. 1,500

Pennzoil.......................... Atlas............... 1,500

Rasville............ 470

Pride............................. Abilene, Texas...... 238

Sinclair.......................... Little America, 1,500

Wyoming.

Sinclair, Wyoming... 1,500

Tulsa, Oklahoma..... 1,500

U.S. Oil & Refining............... Tacoma, Washington.. 1,056

Wyoming Refining.................. New Castle, Wyoming. 647

------------------------------------------------------------------------

Requests for allowances for desulfurization during 1999 are due no

later than April 1, 2000. Allowances allocated in 2000 will have a

compliance year of 2000.

Dated: April 28, 1999.

Brian J. McLean,

Director, Acid Rain Division.

[FR Doc. 99-11830 Filed 5-10-99; 8:45 am]

BILLING CODE 6560-50-P